The Remuneration of Canadian Writers for Literary Works: A ...

The Remuneration of Canadian Writers for Literary Works: A Benchmarking Study

PREPARED FOR

The Writers' Union of Canada (TWUC) Union des ?crivaines et des ?crivains qu?b?cois (UNEQ)

SUBMITTED BY

Marilyn Burgess and Maria De Rosa Communications MDR

September 27, 2017

The Remuneration of Canadian Writers for Literary Works

Table of Contents

TABLE OF CONTENTS ........................................................................................................................................... 1

INTRODUCTION ...................................................................................................................................................... 3 1. CONTEXT .............................................................................................................................................................................. 3 2. GOALS OF THE STUDY ........................................................................................................................................................ 3 3. APPROACH AND METHODOLOGY ..................................................................................................................................... 3 3.1 Scope of Study....................................................................................................................................................................3 3.2 Review of Literature .......................................................................................................................................................4 3.3 Key Informant Interviews.............................................................................................................................................4 3.4 Development of Remuneration Rates and Terms..............................................................................................4 4. STRUCTURE OF THIS REPORT .......................................................................................................................................... 5

I. REMUNERATION OF WRITERS OF LITERARY WORKS IN SELECTED INTERNATIONAL JURISDICTIONS ....................................................................................................................................................... 6

1. REMUNERATION OF WRITERS OF LITERARY WORKS IN THE UNITED KINGDOM ................................................... 6 1.1 Print........................................................................................................................................................................................6 1.2 Digital ....................................................................................................................................................................................7 2.3 Live Appearances and Events .....................................................................................................................................8

2. REMUNERATION OF WRITERS OF LITERARY WORKS IN IRELAND ............................................................................ 9 2.1 Print and Digital...............................................................................................................................................................9 2.2 Live Appearances and Events ..................................................................................................................................10

3. REMUNERATION OF WRITERS OF LITERARY WORKS IN FRANCE ............................................................................10 3.1 Print.....................................................................................................................................................................................11 3.2 Digital .................................................................................................................................................................................12 3.3 Live Appearances and Events ..................................................................................................................................12

4. REMUNERATION OF WRITERS OF LITERARY WORKS IN AUSTRALIA ......................................................................13 4.1 Print.....................................................................................................................................................................................13 4.2 Digital .................................................................................................................................................................................15 4.3 Live Appearances and Events ..................................................................................................................................15

5. THE REMUNERATION OF WRITERS OF LITERARY WORKS IN THE UNITED STATES.............................................16 5.1 Print.....................................................................................................................................................................................17 5.2 Digital .................................................................................................................................................................................18 5.3 Live Appearances and Events ..................................................................................................................................19

6. SUMMARY ANALYSIS AND OBSERVATIONS...................................................................................................................19 6.1 Trends Show a Decline in Remuneration for Writers in Selected Jurisdictions ............................... 19 6.2 Advocating for Minimum Standards in the Remuneration of Writers.................................................21 6.3 Summary of Remuneration Rates for Print in Selected Jurisdictions ...................................................22 6.4 Summary of Remuneration Rates for Digital Content in Selected Jurisdictions..............................23 6.5 Summary of Remuneration Rates for Live Appearances and Events in Selected Jurisdictions.23

II. REMUNERATION OF WRITERS OF LITERARY WORKS IN CANADA .............................................. 25 1. THE REMUNERATION OF WRITERS OF LITERARY WORKS IN CANADA...................................................................25 1.1 Print.....................................................................................................................................................................................25 1.2 Digital .................................................................................................................................................................................27 1.3 Live Appearances and Events ..................................................................................................................................28 2. CURRENT REMUNERATION OF WRITERS IN RELATED SECTORS..............................................................................30 2.1 Current Remuneration Rates for Literary Translation and Editing in Canada...............................30

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The Remuneration of Canadian Writers for Literary Works

2.2 Remuneration Rates for Writers Working in Radio and Screen-Based Cultural Industries in Canada ....................................................................................................................................................................................... 31 3. SUMMARY ANALYSIS AND OBSERVATIONS...................................................................................................................33 3.1 Royalty Rates for Authors of Printed Books in Canada are Comparable to Rates in Selected International Jurisdictions ...............................................................................................................................................33 3.2 Rates for Magazine Writing Varies Widely by Jurisdictions .....................................................................34 3.3. Canadian eBook Royalty Rates are Comparable to Rates in Selected Jurisdictions .....................35 3.4 Rates for Live Appearances are Higher in Other Jurisdictions.................................................................36 3.5 Canadian Remuneration Rates for Literary Works Are Lower Than Rates in Related Sectors in Canada ....................................................................................................................................................................................... 37 III. PROPOSED MINIMUM REMUNERATION RATES FOR WRITERS OF LITERARY WORKS IN CANADA.................................................................................................................................................................. 38 1. PROPOSED MINIMUM REMUNERATION RATES AND TERMS FOR WRITERS OF LITERARY WORKS IN PRINT ..38 2. PROPOSED MINIMUM REMUNERATION RATES AND TERMS FOR WRITERS OF DIGITAL LITERARY WORKS....39 3. PROPOSED MINIMUM REMUNERATION RATES AND TERMS FOR WRITERS FOR LIVE APPEARANCES ..............40 GLOSSARY.............................................................................................................................................................. 41 LIST OF ACRONYMS USED IN THIS REPORT .............................................................................................. 44 BIBLIOGRAPHY.................................................................................................................................................... 45 1. INTERNATIONAL SOURCES OF LITERATURE AND WEBSITES ....................................................................................45 1.1 Australia............................................................................................................................................................................45 1.2 France.................................................................................................................................................................................46 1.3 Ireland ................................................................................................................................................................................48 1.4 United Kingdom .............................................................................................................................................................48 1.5 United States ...................................................................................................................................................................49 1.6 Other....................................................................................................................................................................................51 2. CANADIAN AND QU?BECOIS SOURCES OF LITERATURE AND WEBSITES ................................................................51 ANNEX 1: LIST OF INTERVIEWEES ................................................................................................................ 55

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The Remuneration of Canadian Writers for Literary Works

Introduction

1. Context

Writers' organizations in Canada and elsewhere strive to ensure that writers are fairly remunerated for their work. International trends show that the incomes of literary writers have fallen significantly in recent years with digital technologies impacting significantly on the dissemination and monetization of literary works. In addition, writers increasingly participate in live engagements often without remuneration.

Copyright laws have not responded helpfully to the challenges of digital disruption, and have not adapted in the direction of protecting creators and maintaining a strong rights position for them. As well, powerful and well-resourced interests in the technology sector have also applied pressure on these creative rights, working hard to expand definitions of existing copyright exceptions while suggesting more and more exceptions be created by legislators.

Within this context, Communications MDR was engaged by The Writers' Union of Canada (TWUC) and the Union des ?crivaines et des ?crivains qu?b?cois (UNEQ) to undertake a benchmarking study on minimum rates of remuneration and to propose minimum rates for literary works in Canada.

2. Goals of the Study

The goals of this study are fourfold:

1. To research and document current standards in remuneration for work undertaken by professional writers working in the artistic discipline of literature in Canada;

2. To research and document current standards in remuneration for work undertaken by professional writers working in the following jurisdictions internationally: the United States of America (US), the United Kingdom (UK), Ireland, France and Australia;

3. To research and document current standards in remuneration for work undertaken by professional writers working in the related cultural sectors of literary translation, freelance writing, editing, and writing for the screen-based and radio cultural industries in Canada;

4. To propose minimum standards and terms of remuneration for literary writers in Canada for consideration by TWUC and UNEQ based on the findings in Canada and other jurisdictions.

3. Approach and Methodology

The study involved multiple lines of evidence: a review of Canadian and international literature, as well as interviews with Canadian and international representatives of writers' associations and trade unions as well as representatives of festivals and book fairs.

3.1 Scope of Study The scope of the study focused on identifying the most recently published remuneration rates for writers working in the artistic discipline of literature. For the purpose of this study, the artistic discipline of literature encompasses literary works as defined by the Canada Council for the Arts, as "a print or electronic publication, which varies in length and content, and includes fiction, short fiction, poems, literary non-fiction, children and young adult texts, exploratory texts that use new technologies, spoken word and storytelling. The work is driven by the ideas, themes, and opinions of

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The Remuneration of Canadian Writers for Literary Works

its writer(s). Plays are also considered a literary work when published by a literary publisher."1

This study examines rates of remuneration for the following: a) traditional publication of literary works in print (books, anthologies, magazines or journals); b) digital publication of literary works (eBooks and digital magazines; and c) live appearances (such as readings, lectures, panel discussions and workshops). Rates examined in this report are minimums recommended by writers' associations. Where information is available actual rates being paid to writers have also been included.

An examination of trends in remuneration for self-publishing is beyond the scope of this study. In this report, the traditional print publication of literary works and the digital publication of literary works refers to works published by a traditional publisher. The growing professional self-publishing economy requires its own study.

3.2 Review of Literature

The consultants undertook a review of web-based literature on rates of remuneration for literary works in the following jurisdictions: the United Kingdom (UK), Ireland, France, Australia and the United States of America (US). This allowed the consultants to examine rates, and identify best practices in terms of how these rates are developed. The review included rates of remuneration in the field of literature and related sectors in Canada: literary translation and editing, radio and the screen-based sector.

3.3 Key Informant Interviews

The consultants conducted fifteen interviews with representatives from the literary sector in Canada, the UK, Ireland, France and Australia as well as representatives from the Canadian screen-based sector. The purpose of these interviews was to gain an understanding of published rates, best practices in determining these rates and any issues for consideration in establishing rates for TWUC and UNEQ. Annex 1 contains a list of the stakeholders interviewed.

3.4 Development of Remuneration Rates and Terms

Based on the findings of the literature review and interviews, the consultants developed proposed remuneration rates and terms for literary writers in Canada, for print and digital publications and live appearances, for consideration by TWUC and UNEQ.

It should be noted that with respect to authors' royalties, these are typically calculated as a percentage of either the price or sale amount of every copy of a book sold, and vary by publisher. For the purpose of this study, the following terms have been used throughout as a basis for comparison of royalty rates:

Publisher's retail price is the retail price established for a book and is also known as the "list price" or "cover price" of the book. "Publisher's retail price", or "list price" or "cover price" refer to the price marked on the cover of the book.2

Net Sales are actual cash receipts from all sales of the book minus certain expenses, which may or may not include taxes, discounts or commissions charged by retailers, wholesalers, and/or distributors, and other publisher costs. The types of expenses to be deducted are defined in the

1 Based on the definition used by the Canada Council of the Arts as published on its website, retrieved from . 2 Susan Spann, "Beware of Kings with No Clothing ? Calculation of Royalty Fees In Publishing Contracts," in Writers in the Storm Blog, March 9, 2012, retrieved from ; "The Net Revenue Royalty Clause", in , March 13, 2015, retrieved from: .

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